Frontier Oil Dragged to CHRAJ Over Alleged Breach of Agreement

A 75-year-old businessman, Alhaji Moro Mohammed, has petitioned the Ashanti Regional Office of the Commission on Human Rights and Administrative Justice (CHRAJ), seeking an investigation and amicable resolution of a dispute between him and Frontier Oil Ghana Limited over the operation of his filling station at Fawade in the Kwabre East Municipality of the Ashanti Region.

In a petition sighted by SWIFTNEWS3, Alhaji Mohammed accused Frontier Oil of failing to honour several commitments made before taking over the operation of the already functional filling station along the Tafo–Mampong Highway.

According to the petitioner, after parting ways with a previous Oil Marketing Company, he entered into an agreement with Frontier Oil on the understanding that the company would renovate the facility, improve its operations, adopt competitive fuel pricing to increase customer patronage, and ensure a fair and mutually beneficial dealer arrangement.

However, he alleged that the company has consistently sold petroleum products at prices higher than many of its competitors, contrary to the assurances it gave during negotiations. He said the pricing strategy has negatively affected customer patronage and significantly reduced sales volumes at the station.

Alhaji Mohammed explained that he accepted a reduced dealer commission of about GH¢0.20 per litre because Frontier Oil assured him that increased sales volumes would compensate for the lower commission. According to him, the expected increase in sales never materialised due to the company’s failure to implement the promised competitive pricing policy.

The petitioner further claimed that Frontier Oil reneged on an agreement to allow his transport company to haul petroleum products from the Tema depots to the Fawade filling station. Instead, he alleged, the company retained control of the transportation arrangement, denying his company the opportunity to undertake the service.

He also disputed Frontier Oil’s claim that it spent approximately GH¢1,101,549 on renovation works at the station, arguing that the facility was already operational before it was handed over to the company. He maintained that there were no major structural defects to justify such expenditure, while some proposed expansion works were never carried out.

Another issue raised in the petition relates to the execution of the final agreement between the parties. Alhaji Mohammed alleged that the document executed on his behalf by his son contains significant provisions and alterations that differ from the original understanding reached with Frontier Oil. He further claimed that his son’s signature was transferred from a separate document acknowledging receipt of the agreed contract amount and used on the final agreement without proper authorisation.

The petitioner is therefore asking CHRAJ to investigate the operational relationship between the parties, review Frontier Oil’s pricing commitments and their impact on sales and dealer earnings, investigate the alleged transportation agreement, conduct an independent assessment of the renovation works and the claimed expenditure, and review the final agreement executed on his behalf.

He is also seeking any additional recommendations that CHRAJ may deem appropriate to ensure a fair resolution of the matter.

Alhaji Mohammed stated that at the age of 75, he seeks fairness, transparency and the